The UK and EU Are Cracking Down on Bitcoin, Because of Crime Concerns

By Tom Pritchard on at

Apparently the UK and EU governments are planning on cracking down on Bitcoin, over concerns tat the cryptocurrency is being used for a variety of illegal activities including money laundering and tax evasion.

According to The Telegraph the Treasury has plans to start regulating Bitcoin and other cryptocurrencies to ensure they're in line with existing anti-money laundering and counter-terrorism financial legislation. The idea being that the anonymity aspect of cryptocurrency, which has made it so appealing to the less-than scrupulous members of society, will be over as traders are forced to disclose their identities. An EU-wide plan will force Bitcoin trading platforms to monitor transactions and report any that seem suspicious.

Both sets of rules will be coming into effect sometime next year.

The Telegraph's article also coincided with a massive drop in the virtual currency's value. Coincidence? I think not!

The UK and EU aren't the first governments to do something about this whole 'Bitcoin' thing. China and Vietnam both banned the trading of cryptocurrencies earlier this year, sending crypto-exchanges overseas.  [The Telegraph]